The impact of digital transformation on the performance of small and medium-sized enterprises

This dissertation illuminates the complex interplay of digital transformation in Small- and Medium sized Enterprises (SMEs) by examining the relationship from three di erent angles – namely its quantification through digital maturity, its impact on performance and innovation, and its relevance to crisis management in times of digitalization. Together, these facets form a synergistic framework that provides a previously unavailable perspective through which the intrinsic value and transformative potential of integrating digital technologies into SMEs’ business models can be recognized and leveraged. The overall perspective results from three individual, yet sequential studies with a specific focus each.
The first study of this cumulative dissertation ”Dynamics of Digital Change – Measuring the Digital Transformation and its Impacts on the Innovation Activities of SMEs” sets the stage by quantifying the levels of digital transformation and exploring their impact on innovation capabilities within SMEs. This foundational understanding underscores the strategic importance of digital transformation and its profound influence on innovation performance, aying the groundwork for the subsequent investigations. The second study ”Keeping Pace with the Digitalization – Exploring the U-Shaped Relationship between Digital Orientation and Performance in SMEs” expands the discourse by delving into the nuanced connection between digital orientation and organizational performance.
Employing a novel approach to measure digital orientation, the study reveals a positive correlation between digital orientation and SME performance. The study also emphasizes the necessity of a long-term vision for digital transformation, acknowledging the possibility of initial performance dips in the transformation journey but reinforcing the substantial long-term benefits. The third study ”Digital Transformation Amid Crisis – Navigating SME Growth and Business Model Disruption” examines the role of digital transformation in crisis management and prevention in the context of the Covid-19 pandemic. The study demonstrates how digital transformation can equip SMEs with enhanced resilience against external shocks like the Covid-19 pandemic.